Don’t Confuse Training with Meetings

meetingpic.Initial and continued on-the-job training is one of the most effective ways to curb shrinkage and loss.  When done correctly it can reduce employee theft, lower shoplifting loss, cut down on administrative mistakes and catch vendor fraud.  Unfortunately, it’s become one of the most dreaded parts of a job.

It’s dreaded, by both managers and employees, for a good reason.  On-the-job training has become confused with and replaced by the employee meeting, which is usually boring, poorly run and downbeat.  But, they aren’t the same thing.   

Over the years experts have promoted replacing the “old way” of individualized on-the-job training (and management) with the “new and time saving” plan of having employee meetings instead.  The idea of managing and training people by group, rather than individually, is becoming the norm.

Supervisors are trying to change and manage behavior through group meetings, instead of properly training (at first and on a continuing basis) employees individually.  But, that way of managing only goes so far with good or average employees, and it especially doesn’t work with problem ones. 

It’s not uncommon for a new policy to be created as a response to one or two people’s problem behavior.  The policy is then presented in an employee meeting as a store wide issue, rather than the individual one it actually is.  Often, new policies don’t need to be written – the old ones just need to be enforced. 

They need to be enforced at the individual on-the-job training or coaching level.  Employee meetings are, at best, ineffective places to address one person’s behavior; at worst, they undermine management’s credibility and authority.

For example, this was overheard in a retail store – “Don’t forget the employee meeting at 3.  You know, where we all get yelled at for something Brittney and Josh are doing, but the team leaders are too scared to say anything to them.” (These weren’t their real names.)

It’s a given that proper training is the best defense against mistakes, loss and shrinkage.  Employee meetings are good places to give information and do general training.  But, the best and most effective training is still individual coaching based on the employee’s strengths and weaknesses. 


Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction.  She’s an educator, consultant, lecturer, trainer and facilitator, who has conducted over 200 workshops, trainings, presentations, college classes and seminars. 

After Dark Is Not Just For Vampires

Money1For Retailers there are a number of scary things that happen when the sun goes down. As we get into fall it becomes darker, earlier. This can become problematic for us. We have issues that get magnified with darkness that concerns employee/customer safety and the safety and security of our businesses. There are the usual concerns of employees walking to their cars after closing and the like. I want to bring up some that you may have not considered.

Employees – Are you taking your deposit after closing? Night makes this a much more dangerous task. Consider changing this to mid-day. Take it at lunch time. Lock the deposit into the safe overnight. Then take it during the day when there is less risk. Safes are not very expensive. $400 will get you a decent safe. Bolt it to the floor so someone does not steal the safe. When you take the deposit to the bank conceal it in something other than the bank bag. Let’s not make it too obvious. 

Robbery – Many of us never discuss this with our folks, we should. What is your plan? Do they understand that their safety and the safety of your customers trump everything else? If you are not sure what you should do or say, contact us.  I can send you a draft policy and some materials you can use (free of charge and I am not going to try to sell you anything). 

Customer and Employee Safety – Yes you could be liable for something that happens while on your property. This includes your parking lot. Even if you are leasing in a strip center. If there are lights out in the parking lot or if it is poorly lit then do or say something. An email to the management company or property owner will put them on notice that you have a concern. If you have control, get it fixed. If there are people hanging around that you are uncomfortable with, then contact the Police. Ask to meet with a Sgt. or Lt. over your area. They would rather prevent an issue than deal with the results. If the department has public business meetings, you should attend. This will give you information on crime trends in your area and ideas on how to combat them.

Speaking of the Police, have you taken the time to make acquaintances with the Police Officers working your area? Do they know that you always have a cup of coffee available and want their presence in your store? Do they know that you encourage and support their efforts? A uniform officer and a patrol car in the area of your business goes a long ways to preventing problems. 

As a former Police Officer, I can tell you that these things mean a lot to them. The majority of contact they have with people is with criminals and victims. Normally they do not see the rest of us as we are not their normal “customers”. Especially in today’s times a kind word, show of support and asking for their opinion and guidance mean a lot to them. Do this enough and when you really do need them, They will be responding to the face of a person they know instead of an address.

Remember, those Officers, their spouses and friends are also your potential customers.

Shoplifters – Remember that shoplifters need one thing to ply their craft: concealment. Even if you have a Checkpoint System make sure that your store is brightly lit, that there are no hidden spots that make a shoplifter feel warm and fuzzy about concealing merchandise. Make sure that your folks fully understand your vision of customer service. Staff that display good customer service skills will shut off most impulse shoplifters. Consequently good customer service skills are not just a tool for sales but a weapon against shoplifting.

Customers that have Checkpoint Systems that LPSI installed can always schedule a free, live on-line shoplifting seminar. We are happy to help. October is a great time to schedule this before the holiday season gets in full swing. This will help raise your staff’s shoplifting awareness for the holidays.

Let us know, if we can help you get ready for your holiday selling season!


ANNUAL INVENTORY BEST-PRACTICES

theft (11)For a large portion of retailers, this time of year means one thing, inventory. I personally hate this time of year. I’m getting a little older and I just can’t hang with overnight shifts. It doesn’t make it any better that my bosses what us (RLPMs) to attend as many inventories as our schedules allow… I’ve done three this month so far and my sleep schedule still isn’t back to normal. With all that inventory on my brain, I thought I’d share some best practices for my peers out there.

First, let me say that my company doesn’t contract any third party to conduct our physical count. We do it ourselves. While there are some great companies out there who service some of the world’s leading retailers, we’ve found that our inventory management is much better when left to the people who it matters most to.

Second, we take the majority of our store inventories overnight during September-October as opposed to the end of the 4th quarter in the January time frame. We do this because for several reasons. One, our stores are slower in regard to foot traffic right now. Second, we are light on inventory as we gear up for the holiday. Lastly, we want to catch all those “out of stocks” that we have through the store prior to the big rush. This allows to be in a far better stock position going into the holiday shopping season. You can’t sell pegboard, right?

In my years of supporting the inventory process, I’ve seen what works, what doesn’t and what is just a waste of time. Here are just a few of my inventory best practices:

Count overnight – No customers. That’ all that needs to be said ☺

Apparel – Key here is making sure that all garments have a barcode. Missing tags can really hold up a count for hours. Starting about 1 week out from inventory, begin assigning key associates to go rack, to rack, to rack looking for missing tags and replacing as they find them. We use a sticker on each rack with the associates initial once it has been cleaned up. This gives us accuracy and some level of accountability.

Footwear – if you sell footwear, you have mismates. Now is the time to purge them.

Hiding spots – As a manager, you are fully aware of all the hiding spots in your store. Find them, as well as all the merchandise hidden within. Think warehouse racks, offices, storage cabinets, and basedecks.

Basedecks – I’m going to give them their own bullet point here. A basedeck is the bottom shelf on a gondola. They can be lifted up and merchandise can be hidden under them. I make it a point to lift up every single basedeck in the store prior to inventory. I always find thousands of dollars of merchandise.

Gift cards — if these are replenished like any other product, make it easy on yourself and pre-count them. You don’t want to be stuck scanning/counting 10,000 gift cards on inventory night.

Warehouses/storage containers – Pre-count these the day before your inventory. This will again save plenty of time during the night.

Top-stock/Risers – either pre-count your back-stock ahead of time, or assign one or two people to count this during inventory night. I’ve always had success with a “top-stock team”.

Single Scan areas Vs. Multi Scan areas – To this day, I have managers make some pretty bad decisions on area tickets. Yes, Single scan takes a bit longer (since you have to scan each item), but your accuracy will be far greater. Obviously, your single scans will be in your soft lines (shoes, clothes) but they can have a benefit in hardline areas as well. Areas such as ammunition, fishing poles, sleeping bags and tents, and any other area where an associate may get confused (or lazy) with multiple colors and sizes.

Have a team in place as well as a plan – What area will be the most difficult? Once you figure that out, start there. The rest of the night will be a cake walk.

Warehouse shipments — make sure to suspend any warehouse shipments a day before your count. Additionally, if you do get a truck before your inventory, make certain it is not received in until after your count. If not, you could potentially see a significant loss on paper due to all that missed product sitting in the loading dock.

Use DNI markers on all that product you pre-counted. This will ensure that your counters won’t count the same product twice.

While this list is far from being all inclusive, it does give you a baseline for what you should be looking for. Often times, we get caught up in making sure our shrink isn’t too high, we forget that accuracy is as just important. For example: if you have 200 lawn chairs, but there are 5 different colors, (red, blue, yellow, green and black). Each of these chairs has its own sku, but they are all $5. If an employee scans and counts all 200 under only one sku, you will have no shrink, but your inventory counts will still be off. Your books will show 200 red chair and zero of the 4 other colors. Most likely, you’re now going to be overstocked on the additional colors. Proper inventory management starts with an accurate inventory count.


The Habitual Shoplifter

shoplifting2According to the National Association for Shoplifting Prevention (NASP) there is no profile of a typical shoplifter. 

And while three quarters of the shoplifters are adults, the rest are under age persons. Men and women shoplift equally, and more than three quarters of the shoplifting done in the United States is considered opportunistic.  Habitual shoplifters, which according to the NASP steal an average of 1.6 times per week, employee theft and organized shoplifting rings are a major concern for the retail industry, and the cause of billions of dollars of loses.

For more about this and other topics follow the links below.


Habitual Shoplifters are an International Concern

Shoplifting and other forms of retail theft cost retailers tens of billions of dollars each year. As a result retail leadership has learned to recognize the value of a well-trained management staff and a professional loss prevention department. We have learned to drive operational efficiency, and ensure that controls are in place and adhered to throughout the organization. We have learned the value of deterrence, limiting the desires and the opportunities for theft and other losses by integrating loss prevention concepts with retail practices. We have embraced a belief in training and awareness as being at the heart of a successful loss prevention program.

Despite our best efforts, there will always be those that will test our resolve. For those retail loss prevention professionals that must deal with shoplifters every day, we are trained to recognize that a shoplifter can look like anyone—shoplifters are not bound by gender, race, creed, or social standing. Professionals are trained to identify patterns of behavior and must follow strict protocols before shoplifting suspects can even be approached. There are well-defined principles that guide our decisions, and clear steps that must be followed before an apprehension is made.

But there are times when specific individuals will draw our immediate attention. Based on well-established patterns of previous behavior, the habitual thief—those that are known to have stolen from us on multiple occasions in the past—deserve our efforts and focus. While not a definitive indicator of future intentions, their presence in the store warrants priority consideration.


Teton Village Sports shoplifters arrested

TETON COUNTY, Wyoming –

Two suspects in a recent shoplifting were arrested after they returned to the same store wearing the clothing the store managers say they stole.
On Saturday at 10:24 AM the Teton County Sheriff’s Office received a call from an employee of Teton Village Sports reporting that the suspects from a shoplifting incident earlier that week were back in the store. They were reported to be even wearing the same clothes they had been wearing when captured on surveillance video earlier.

Teton County Sheriff’s Office deputies, who were patrolling the area, arrived within seconds and positively identified the suspects as those wanted for the original crime. The deputies say that the suspects were in the process of victimizing the store for the second time.


Using Technology To Prevent Shoplifting

theft (12)Shoplifting is an issue with lots of bad ramifications.  The shoplifting that many businesses experience is financially devastating for the business, local and US economies. The financial burden that small business owners experience due to shoplifting can be hard to overcome.  Profits are slim in some cases and the shoplifting and employee theft can make a small retail business close its doors for good. For more about this and other topics, follow the links below.


Why Inventory Tracking Software Is a Critical Investment

Running a small business often means making tough decisions about how to spend and where to invest your limited capital. From inventory shrinkage to supply and forecasting challenges, an effective inventory tracking system and software is a critical company investment.

If you don’t track your inventory, you have no way of preventing employee theft, and trying to create your own inventory system using a spreadsheet program like Excel is time-consuming, error-prone, and rarely effective.

These days, it is relatively inexpensive for a small to medium-sized business to get its own inventory tracking system with the latest software. When you consider the potential costs of not tracking your inventory, it’s a no-brainer.

Beating Inventory Shrink

In 2014, inventory shrink resulted in over $44 billion in losses for retailers, over 50% of it the result of internal theft, administrative errors, and unknown causes. Internal theft alone accounts for 34.5% of inventory shrink. Administrative errors make up another 16.5% of shrink. These can be significantly reduced through the implementation of effective inventory software and systems.


Owner: Shoplifting ‘not a victimless crime’

Owner’s experience shows the toll that shoplifting takes on small businesses.

BY SPENCER PARTS RALEIGH NEWS & OBSERVER

CARY, N.C. — In early July, designer dresses, slacks and jackets valued at $3,000 were stolen from ADORE Designer Resale Boutique in this Raleigh suburb, one of Nancy Alinovi’s two consignment shops in the area. She still feels sick about it.

“It’s just this feeling in your chest,” she said. “It’s not a victimless crime.”

Alinovi said it will be months before everything returns to normal at the family-owned boutiques, which cut prices in order to stay afloat after the theft. Her experience shows the toll shoplifting takes on small businesses, where margins are small and business is personal.

According to a National Retail Federation’s security survey, shoplifting accounted for 38 percent of the $44 billion in retail inventory loss due to crime in 2014.

Large capital losses from theft are especially hard on small businesses, said Jennifer Martin, executive director of Shop Local Raleigh, an organization that advocates for and supports small companies. Many smaller firms are tight on time and money, and an unexpected event can push them to the breaking point.


Security systems know all the self-scan tricks

MOUNT DORA — Last August, a 58-year-old woman, using a self-checkout station at Wal-Mart in Leesburg, allegedly was seen placing two items in her hand before scanning them so the scanner could not record the barcode and charge her for the blocked item.

Assuming she was being watched from afar, she also allegedly waved items too far away from the scanner for it to record a sale but made it look like she was using the equipment as intended.

On Saturday, a 30-year-old woman allegedly tried a couple of other ways to beat the system at Wal-Mart in Mount Dora, concealing items inside a sweatshirt and even a backpack she self-scanned.

Neither got away with it and face theft charges because retailers know all the tricks and have self-check security systems in place to detect them, according to the website retailtouchpoints.com.


Using Policies and Procedures as a Shoplifting Deterrent

law-3The policies and procedures about shoplifting and detaining shoplifters should be known  by every person in your store or business to ensure the safety of your employees.  The importance of the policies can help with employee theft in your store.  If a zero tolerance procedure is known by everyone, it can serve as a deterrent for future or possible theft. For more about this and other stories, follow the links below.


Adidas turns to a new data collection system to pinpoint problems and reduce shrinkage.

When he came home to Germany after the First World War, Adolf “Adi” Dassler went into the athletic shoe business, creating a company that was eventually named for its founder: Adidas. (His brother Rudi moved across the river and founded Puma. Shoes run in the family.)Today the Adidas Group, still headquartered in the small Bavarian town of Herzogenaurach, is a global leader in the sporting goods industry, with 2014 sales of just under $16 billion. Its brands include Adidas, Reebok, TaylorMade, Ashworth, CCM and Five Ten. Earlier this year, the company sold its Rockport unit to a new entity formed by Berkshire Partners and New Balance.

“Adidas is not a natural retailer,” says Ken Bohnert, the company’s profit protection manager. “We came into the retail world on the back of our manufacturing arm — 10 percent of our income stream comes from retail, 90 percent from manufacturing.”


Wisconsin College Admin: Police Shouldn’t Prosecute Shoplifters [VIDEO]

An administrator at the University of Wisconsin-Madison suggested at a recent roundtable conversation that, in order to combat “overpolicing” in the community, police should no longer respond to shoplifting claims at large stores such as Wal-Mart, and shouldn’t agree to prosecute people caught stealing.

“I just don’t think that they should be prosecuting cases … for people who steal from Wal-Mart. I just don’t think that, right?” said UW-Madison director of community relations Everett Mitchell. “I don’t think [with] Target or all them other places, them big box stores that have insurance, they should be using justification, the fact that people steal from there as justification to start engaging in aggressive police practices, right?”

 Everett’s remarks were made Tuesday as part of a UW-Madison panel on the topic of “Best Policing Practices.” Everett argued that community police shouldn’t prioritize enforcing the law, but instead should focus on achieving “safety” as it is defined by a local community, even if that definition includes allowing some stores to be robbed with impunity.

Can You Sue an Employee for Stealing?

Dealing with customer theft is one thing, but what happens when it’s your own employees stealing from your store? Of course there are criminal laws against theft, but that may not get you the full value of what was stolen.

So can you file a lawsuit against an employee for theft? And, if so, what kinds of theft are covered?

Paycheck Penalties

If your state allows, and if you’ve decided not to fire the employee, you could consider deducting the amount of the theft from his or her paycheck. Just be careful: some states (like California) prohibit this entirely, and some states have certain restrictions on when employers can deduct wages and how much they may deduct. You don’t want your attempt to deal with theft to end up in a lawsuit against you.

 


Retail Burglar Alarm System Considerations

240x600I thought I would provide you with information to assist you in making decisions regarding the purchase or maintenance of a security system for your property. The information provided will help cut though the “fog” of choices regarding alarm systems.

I have over 35 years of experience in both commercial and military property protection. My Bachelor’s Degree is in Industrial Security and my knowledge includes physical security, design of alarm solutions and installation. I am also a licensed alarm tech.

When selecting a security system for a commercial space, you do not have to spend a great deal of money. However, you need to be cautious of putting in a system that is so inexpensive that you are really only getting a false sense of security. If you purchase smart, you will have a good system that will last for years and provide excellent coverage at a very reasonable price.

Choosing a provider – There are so many choices that it is usually overwhelming. Ranging from large national chains to single man shops. What is the best? Well, there is no answer that fits everyone. But you should consider the following:

How reliable is the company? How long have they been in business?

With large national chains, you tend to be just a number despite their advertising claims.

With some small operations you have to be concerned, if they will be there next year.

Generally regional chains and smaller operations are going to be more attentive to your needs.

Be VERY cautious of alarm sales people. Most of the time they are focused on quota and really do not care, if you are properly protected or not. Most do not have practical knowledge of physical security, they are salesmen. Make sure you get what is best for you not for the sales person who is trying to make quota and/or selling you components that are add-ons you really do not need.

How long is the contract? 5 years is WAY too long of a term. A good contract length is 2-3 years. Remember, if they cannot hold you with good performance and service, they will tend to try to get a longer contract. Length of contract is negotiable even with large companies. Besides where will you be in 5 years? Will your company have outgrown your current space and you have to move? An assurance of “oh if you move we will move with you” may sound great but what if they have done a poor job? Do you want to continue that relationship?

Watch out for companies that have wording in their contract that automatically raise your monitoring charge usually on an annual basis. Many times it is explained away as a “cost of living” type charge. It is just an underhanded way to get more money out of you.

I will discuss equipment later in this document but keep this in mind: A trick that the large companies do, is sell you the alarm control.  But it is proprietary and THEY are the only company that can program it. This keeps you locked into them forever. No one else can monitor or service it. Insist on a NON-Proprietary alarm control.

Are they insured? Get a copy of the insurance and insist on an updated copy every year. Better yet have them list you on their policy. Is their coverage adequate for a loss due to their negligence? Keep in mind that alarm companies are NOT insurers. They will not insure your life or property losses. That is what your insurance is for. But if they make a serious error or commit Errors and Omissions (E&O), you need them to cover their mistake. Have your insurance agent review the coverage document provided to you. Do this up front. Like my Attorney says to me “Let’s get the paperwork right at the beginning because I have never seen anyone wear their wedding dress to the divorce”.

Are they licensed? Check the Secretary of States web site. Are they properly licensed for low-voltage alarms, are there complaints….?

System Design – Unless you want a lot of bells and whistles you can keep It pretty simple. Here are the key items you should have:

Alarm Control (brains of the system). See above about proprietary vs non-proprietary.

Alarm Keypad near the front door. This is how you arm and disarm the system. In my experience a keypad with an “alpha” display is best. This usually costs a bit more but instead of it displaying a zone number such as “Zone 08” it will for example say “Back Door Left”. This is much easier to deal with when there is a problem.  And there will be a problem usually late at night when you need clear information. If you also access your suite from several doors, then you want a keypad at each door for your convenience.

Door Contacts. Contact every exterior door both personnel and overhead doors whether you use them or not. They are a “hole” in your wall.

Glass Break Detectors should cover EVERY bit of your glass that is accessible. This is the most likely way a burglar will break in. Usually one glass break detector in every office with any windows will take care of it.

Motion Detectors. You should have at least one. This should be in a hallway or other area that would make it very difficult for someone to move very far without tripping it. You do not need to cover every square foot. That is overkill and not generally necessary. The exception would be, if you have very valuable supplies, equipment or other assets you need protecting. Then a motion detector covering that area is warranted.

Fire Protection is a nice thing to add. This may help reduce your insurance premiums. Keep in mind that you may be in a building that has a sprinkler system. What you should ask is that sprinkler system “monitored by a central station” or is it simply going to ring an outside bell if activated. From a fire perspective you want it monitored. However, what happens if there is a water flow in the middle of the night or on the weekend and no one discovers it until business hours? Monitoring will keep your losses in merchandise and structure more limited.

Burglary sirens are nice but do not go crazy. One siren on the inside is enough. Keep in mind that almost every keypad has a built in siren.

Automatic Testing – This is one of the most overlooked issues. If your alarm system is not checking in with the alarm companies central station on a routine basis then how would you ever know if it stops working? This happens a lot! Alarm systems are electronic and mechanical devices that do break. An electrical surge from a phone line connection or 110 Volt power happens very frequently. If your systems communications go down you may never know it. It will not show up on the keypad.

Look for a “Supervised, Weekly Timer/Test”. This is an automated signal that your alarm control is programed to send every week at the exact same time. The central station computer is watching for this signal and if it does receive it then the central station computer notifies an operator and they then notify you. This process is all automated and normally is programed to happen in the middle of the night. The central station will then notify you the next day during business hours. If you are really concerned, then you may wish to select a daily timer/test signal.

Timer/Test signals are very inexpensive to you and many companies provide a weekly one free of charge.

Notification of an Alarm – This is the call list that the central station uses to get a hold of you in the event of an emergency or a problem. They cannot help you, if they cannot reach you. Keep this list up to date. Some of the better alarm companies can send you an automated email several times a year with your current call list. This reminder helps you to keep the list current. The problem with a call list is that it is out of sight, out of mind. Without these reminders you usually do not know until there is a problem. You should also have the alarm company send you an automated e-mail whenever there is an event such as an alarm, timer/test fail, maintenance problem…. Those should also be included in your service at no charge.

Reports – Another often overlooked feature is an open/close report. Your alarm company can program your alarm control to instantly send a signal to the central station each time the system is armed or disarmed. Your system tells the central station which employee armed/disarmed and at what date/time. A summary report is sent to you once a week by e-mail. You should tell them you want an “all activity” report. This should not cost any more. That way you will also see alarms, troubles…. In addition to the opens/closes. This is much easier for you to read. Most of us only need a “log only” report. The log only version is less expensive because there is no intervention by a central station operator.

This report is a very important tool for business owners and managers. It will let you know who is coming in and when which is a good tool to assist you in tracking employee time when you are not there. It will also alert you to someone coming in after hours. Use this report as a proactive tool. If something falls outside the norm then question the employee about it. This lets them know you are aware and will help to prevent issues such as employee theft.

Alarm System Codes – Every employee should have their own code. Employees should not be allowed to share codes. Tell your employees that they are accountable for what happens with their code. If a theft or incident occurs because they gave their code to someone or someone saw the code, then they will be held accountable. Codes should never be simple such as-1234, 2468, a year, birth month/year combination, phone number…. Anything obvious. You might try using a person’s last four digits of their SSN. People tend to protect that number. Let them know that if their code is compromised for any reason, they must notify you and you will simply change it.

Transmission via cellular or internet – I personally love this feature. Most of the problems with alarm systems involve phone line issues. I think cellular is best. A cellular signal cannot be blocked due to a cut phone line or phone company trouble. Most alarm system cellular units hit at least two towers and many times three. Cellular connections are VERY fast. It is also more reliable than your voice cell service.

You can also send signals via the internet. This is nice because like cellular you eliminate a hard wired phone line and is more economical. But an internet connection is vulnerable to interruption and being cut just like a phone line.

There are a lot of other great services that your alarm company can provide you to fit your individual needs: supervised open/close reports, wireless sensors, video tied to the alarm system, remote connectivity to your alarm system via PC, tablet or smart phone and much more. This allows you to access your alarm or view video anywhere in the world. Many of these are not only convenient but critical in business and asset protection.

DO YOU HAVE A ROBBERY POLICY?

shoplifting6Like it or not, there exists a chance that your store will fall victim to an armed robbery. Why? It’s very simple. Your store has money inside. There are those that refuse to work for a living and will resort to a robbing innocent people like you and me. What would you do if faced with that situation? Would you, or your employees know what and how to react in order to prevent injury, or loss of life? Do you have a robbery policy in place that all employees are familiar with? If not, well, it’s time to put pen to paper.

Just within the past month, one of my stores were robbed by tow gunman during business hours. Two men walked into the store, approached the cash office with guns drawn and demanded our money; my money. Luckily, my employees did exactly what they were trained to do and the goons left before anyone was injured. Sometimes, retailers aren’t so lucky. There was a recent story on local news where the same situation occurred at another store and the owner fought back. Unfortunately, it ended in tragedy when the robbery turned into a homicide. That’s not something I ever want to go through.

If you’re created a new robbery policy, I’ll give you some points to consider. Most importantly, there is nothing in the store worth losing your life over. Nothing. Nada. Zip. Zilch. Everything inside those four walls can be replaced. You, your employees or a customer cannot be. In your policy, you should explain that. Train your employees to comply with all demands and get the thieves out of the store as quickly as possible. Most importantly, do not call 911. It’s going to be automatic for people to start pulling out cell phones. DON’T! The response time to a robbery in progress call will be hot and heavy. You don’t want the police showing up with gunmen still in the store. There could be a shootout, potentially hurting people in your store, or you could be faced with a hostage situation. Neither are great, so get them out of the store as quickly as possible. This is why you have CCTV cameras!

In your policy, you should also include an after action plan. For example, what on Earth is that manager, or supervisor on duty supposed to do after being robbed? As calmly as possible, close the store, and ask all customers to come to the front. Inform them that the store needs to close due to a police investigation, however if they would like to give a statement to police, they are more than welcome to do so. Next, move all of your other employees to a common area of the store, away from the crime scene. You’ll probably want to start counting money to see what was lost, but don’t. Remember that your store is now a crime scene and you won’t want to tamper with any potential physical evidence. The police will tell you when they are ready for you to calculate your loss.

Long term, you may want to contact your HR department if you have one, as there may be some employees, especially those who were the actual victim, who may need some counseling. Everyone reacts to these types of situations differently and it’s important that you understand that your employee has just gone through an incredibly stressful ordeal and may need time away from the store to process what happened. While a robbery may not be something that ever crosses your mind, it can happen. Having a policy in place and having your employees well trained on that policy can very well save a life one day. Remember, nothing inside those four walls is worth dying for.


PROSECUTING EMPLOYEE THEFT

theft (2)If you employ people, I can guarantee that one of them, at some point during their employment, will steal from you. It could be some office supplies, or perhaps a few reams of paper; or more commonly, money, or even your merchandise. We trust our employees from the time they are hired and throughout their tenure. Employees know our stores in and out. They know our strengths and more importantly, our weaknesses. This knowledge often leads the employee down the path of dishonesty. I’ve investigated hundreds of employee theft cases and nearly all of these employees say the same thing when they are interviewed. They say they stole because it was easy, or they had no fear of repercussions if they were caught, other than maybe just losing their jobs.

Personally, I don’t care if it’s a $3,000 watch, or a $1.50 bag of potato chips. If I have evidence that an employee willfully and purposefully has stolen from me, I’m going to terminated that employee and refer the matter to local law enforcement for prosecution. It doesn’t matter if that employee is an old man, young woman, or any color of the rainbow; everyone will get the same treatment. In my stores, it is very important that I create a deep understanding with my staff that there is a zero tolerance policy towards theft. You would be wise to do the same.

A few years ago, I came across an employee that had taken a couple of consumable items. It wasn’t much, probably under $10, but they knew they were stealing from me and did it anyway. After obtaining a written confession, I terminated that employee for theft. Due to the dollar amount being so low, I did not contact the police. Not long after, at this very same store, another employee was terminated after an investigation showed they had stolen over $10k in cash. This employee happened to be a different race and sex than that previous employee. Not long after that termination, my store received a lawsuit for wrongful termination. That employee claimed I prosecuted him based on his race and sex, and I let another employee, who was of a different race get off without being arrested. It was a long hard fight to prove our case (which we ultimately won), but it was a great lesson for me to learn. From that day, I adopted my “everyone who steals goes to jail policy”. It’s served me well ever since.

In addition to protecting yourself from employment related liabilities (like the one described above), prosecuting employees caught with their hands in the cookie jar serves one other great purpose. It’s a deterrent. It’s a huge deterrent to other employees who be entertaining the same idea. If Susie Q and I are both cash office employees and I see her get escorted from the store in silver bracelets after she stole a few hundred bucks, chances are, I’m never going to do the same. If your employees know that the consequence of stealing is always going to be jail, from day one, they are less likely to steal from you. If and when they do, you’ll be ready to set the example for the rest of your staff.

I know for some of you out there, making the decision to prosecute an employee, maybe even one of your most loyal and trustworthy employees, is a very emotional thing to go through. You may feel like you want to cut them a break and simply have them pay you back. I’m telling you from experience, that is not enough. They will eventually steal again. Moreover, your other employees will see how easy it is to get away with theft and may do the same thing. The way in which you react to catching an employee stealing should be exactly like how you get out of a bad relationship. Sever all ties, put your emotions aside and do what’s best for your financial future.


Retail and the Digital Age

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The retail industry has seen many changes over the years.  Online shopping has grown and will likely grow more over the next few years, unfortunately, with that comes the real and costly problem of  online fraud. Now retailers have to invest in security for their online and offline retail stores to ensure products and customer’s information are secured.  On the bright side,the digital age has brought the ability for many retail stores to advertise and sell online to many people around the country that otherwise would not be able to do before. To read more about this and other topics follow the links below.


Retail Is About to Be Reinvented, Driven by Digital Technologies

The Retail Store of the Future Will Become the Hub of All User Data.

Since around the time Amazon Prime began offering recurring orders on things like toothpaste and dish soap, people have been predicting the death of traditional retail. The ease of e-commerce, coupled with the reliability and speed of shipping, made the future of local shops and already struggling suburban malls seem grim.

Recently, though, technological advancements in near-field communication (NFC), interactive display and mobile payments have been bringing buzz back to the retail store. With this technology, marketers are merging digital and physical worlds to create seamless, predictive, personalized, and delightful environments that increase sales and brand metrics. Retail is on the verge of total reinvention. And that reinvention is rooted in the user-centric practices of today’s most savvy digital agencies.


Facebook Is Retailers’ Favorite Social Network

Pinterest also of greater interest for retail advertisers than Twitter –

Retailers don’t appear to be holding back when it comes to ad investments in social media. According to June 2015 polling, half of US retailers will be spending more on paid media on Facebook in particular. 

That’s what the National Retail Federation (NRF) found when it asked how many merchants would spend more on advertising on various social networks. Facebook had a commanding lead, but YouTube and Pinterest were also expected to see additional ad spending from 29% and 27% of respondents, respectively. Buying paid media on Twitter was less of a priority, with just 22% planning to spend more on that in 2015. Other research supports Facebook and Pinterest as bigger social shopping destinations than Twitter. UPS found in February 2015 that while 49% of US digital buyers also pinned products on Pinterest, and 48% “liked” retailers on Facebook, just 38% said they followed retailers on Twitter. 


3 Retail Technologies That Cross Over E-commerce

Ever since the retail market of the Web exploded, the expectation was that brick and mortar was doomed. For some stores, such as Borders Books and Music, it met its fate as Amazon.com marched across the bookstore landscape and chewed up most of what was in its path.

However, for the rest of the industry, the lines blurred between online and offline sales and the numbers have never been better. In fact, new mobile technologies are sending more people into stores looking for deals with the same discounts they would get online without the wait.

Online retail still smaller than offline

According to Price Waterhouse Coopers Strategy&, online retail sales still only accounts for about 8 percent of total retail sales. The major sectors that remain untouched are automobiles, gas stations, and food which are items that don’t necessarily do well online as we learned with the death of WebVan all those years ago.

Still, these categories play a major role for almost half of total retail sales. The reality is that the larger the growth of using retail technology for online sales, the better it is for some the retailers.